Understand the Basics of Lagrangian Optimization for ANY Subject

Lagrangian Optimization in Economics Part 1: The Basics & Set-up:
In this video I introduce Lagrangian Optimization. While used in math economics uses Lagrangian Optimization and so you may need to know how to use it!
Specifically I talk about:
-Objective Functions, Constraints, Choice variables, and parameters
-The meaning of the Lagrangian Multiplier lambda
-How to take FOCs
-How Lagrangian Optimization gives the same results for the Utility Maximization Problem
-How Substitution May be Helpful
Timestamps:
0:00 - Intro & Utility Maximization Example
3:05 - Setting-up the Lagrangian
5:00 - What Lambda/Lagrangian Multiplier Means
9:00 - Taking First Order Conditions
11:07 - Full Example Problem Walkthrough
15:33 - Tip: Substituting Constraint Before Solving

[@Bill_in_your_econ_models]

These seem like they are going to be so helpful for people doing Lagrangian Optimization with Economics! and I get a shout-out several times in these.

[@InCaseofEconStruggles]

That’s the goal!